Zenergy, Parent Of Texas REP, Reports Quarterly Results
November 19, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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Zenergy Brands, Inc., the parent of Texas retail provider Enertrade Electric, has filed a 10-Q for the period ending September 30, 2018
Zenergy's acquisition of Enertrade closed in April 2018, so year-ago comparisons do not include any results related to Enertrade
Zenergy Brands, Inc. reported that gross profit for the three months ended September 30, 2018 was $30,452 compared to $10,010 for the three months ended September 30, 2017. The increase is a result of increases in its sales from both the zero cost energy efficiency projects and the electric business. The gross profit for the three months ended September 30, 2018 for the zero cost projects was approximately $4,431, and the electricity business had a gross profit of approximately $21,771.
Zenergy Brands, Inc. total revenue was $440,479 for the three months ended September 30, 2018 compared to $13,460 for the three months ended September 30, 2017. The increase is primarily a result of the company’s launch of its Managed Energy Services (zero cost energy efficiency projects). "The zero cost projects made up approx. $4,431 of revenue in the three months ended September 30, 2018, and the remainder was primarily from the retail electricity provider acquisition were approximately $417,000 in revenues," Zenergy said in the 10-Q. "The revenues for the three months ended September 30, 2017 were primary home automation subscription revenue," Zenergy said in the 10-Q.
Zenergy Brands, Inc. total selling, general and administrative expenses were $653,659 and $645,384 for the three months ended September 30, 2018 and 2017, respectively. "The increase was not significant from period to period. However the costs associated to 2017 were primarily attributed to selling, general and administrative expenses associated with the development of the home automation and service offering, and increased effort in sales and marketing efforts consisting of salary, contractor and consulting expense, and rent. The costs associate to 2018 [sic] consist of selling, general and administrative expenses from the electricity business in the amount of approximately $257,400 while the remaining expenses are attributed to the zero costs program of the Company," Zenergy said in the 10-Q
Zenergy Brands, Inc. in the 10-Q said that, "Loss from operations and net loss were ($632,207) and ($1,104,699), and ($635,374) and ($832,469) for the three months ended September 30, 2018 and 2017, respectively."
"The increase is primarily attributable to an increase in operating expenses, other expenses cost of goods sold, partially offset by an increase in revenues. The increase in net losses is attributed to approximately $248,000 net loss from the electricity division of the Company for the three months ended September 30, 2018 when compared to 2017," Zenergy said in the 10-Q
As it has disclosed in several recent quarterly reports, Zenergy Brands, Inc. stated in its 10-Q for the period ending September 30, 2018 that, "Based on an analysis by the Company under ASU 2014-15, the Company has concluded that there is substantial doubt about its ability to continue as a going concern within one year of the date of these financial statements."
Zenergy said in the 10-Q that, "We had a working capital deficit of ($4,770,782) as of September 30, 2018 compared to a working capital deficit of ($2,154,380) as of December 31, 2017 primarily as a result of an increase in borrowings, subscription liabilities, accounts payables and accrued payroll. Working capital consisted of total current assets of $540,554 offset by current liabilities of $5,311,336 as of September 30, 2018 and total current assets of $83,990 offset by current liabilities of $2,238,370 as of December 31, 2017."
"The Company will require additional financing in order to execute its operating plan and continue as a going concern," Zenergy said in the 10-Q
"During the 2018 fiscal year, the Company intends to continue its efforts to raise funds to support its efforts through the sale of equity and/or debt securities. To the extent the Company’s operations are not sufficient to fund the Company’s capital requirements, the Company may attempt to enter into a revolving loan agreement with financial institutions or attempt to raise capital through the sale of additional capital stock or through the issuance of debt. At the present time, the Company does not have a revolving loan agreement with any financial institution," Zenergy said in the 10-Q